The People's Bank of China to significantly overhaul the cryptocurrency regulatory framework by 2026

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Strengthening Countermeasures Against Illegal Rebates and Fraudulent Funds

The People’s Bank of China announced the key priorities for financial supervision in 2026 at this year’s annual work conference. According to the bank’s statement, cracking down on illegal activities in the cryptocurrency market is a primary focus.

Illegal Rebate and Money Laundering Countermeasures Are Top Priorities

The conference emphasized blocking illegal fund transfers related to scams and gambling. In particular, it outlined a firm stance on monitoring illegal rebate schemes using cryptocurrencies and illicit fund flows. The People’s Bank of China aims to fundamentally strengthen regulations against these illegal activities to ensure market health.

Accelerating Development of Digital Yuan and Cross-Border Infrastructure

At the same time, the bank announced plans to enhance the development framework for the Digital Yuan and improve cross-border Renminbi infrastructure. During the meeting held from January 5 to 6, after reviewing achievements from 2025, they set priorities for 2026. Strengthening cryptocurrency supervision is positioned as part of a broader financial governance strategy.

Market Impact and Future Outlook

With increased regulation, illegal cryptocurrency transactions and illicit fund transfers related to rebates are expected to be further restricted. The People’s Bank of China’s policies reflect a dual focus on promoting the adoption of the Digital Yuan and enhancing the security of the digital financial system.

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